PEPE Coin Down 60%—But Key Signals Point to a Strong Rebound

Currently trading at around $$0.000008810, the token has dropped 27% in just the past 24 hours sparking concerns among investors.

PEPE Coin, one of the most popular meme-based cryptocurrencies, has witnessed a staggering decline, shedding 80% of its value since its all-time high of $0.00002825 in December 2024.

The steep sell-off is driven by the Trump Tariffs and whale activity, which has flooded the market with massive token deposits, increasing selling pressure.

Pepe Coin has recently undergone a 60% price correction. Source: BowTiedIguana via X

On-chain data indicates that over 1.1 trillion PEPE tokens have been liquidated in recent days. A crypto analytics firm reported that a single wallet deposited 430 billion PEPE, valued at $6.39 million, into Binance within a span of nine hours. Another whale offloaded 325.5 billion PEPE, worth $4.9 million, while additional large holders transferred millions more to exchanges. This influx of supply significantly weakened PEPE’s price momentum, leading to a sharp decline.

Signs of a Potential Recovery

Despite the recent sell-off, some indicators suggest that PEPE may be on the verge of a recovery when the market rebounds. One of the key metrics traders look at is the Market Value to Realized Value (MVRV) ratio. Historically, when PEPE’s MVRV enters certain levels, the price has rebounded strongly. Previous similar occurrences have led to price increases of 51% to 72%. If this trend holds, PEPE could see a substantial bounce in the coming weeks.

PEPE whale “0xc25” resurfaces, depositing 500B PEPE after turning $3K into $51.25M. Source: SpotOnChain via X

Another encouraging sign is the decline in PEPE’s exchange reserves. On-chain data shows that more PEPE tokens are being moved from exchanges to private wallets. This often signals that investors are choosing to hold rather than sell, which can reduce selling pressure and stabilize prices. Crypto trader ChandlerCharts noted, “For the first time since January 18, PEPE actually seems to be pushing up with conviction.” If buyers regain confidence, the coin could see a reversal.

Watch – Pepe Price Analysis

Halving Event Could Spark New Momentum

One such big event in the pipeline that will influence its price is the impending halving of PEPE, which is slated for February 4, 2025. The block rewards currently stand at 62,500 PEPE and will be reduced to 31,250 PEPE per block, reducing the rate at which new tokens flow into circulation. Historically, when this has happened in other cryptocurrencies, such as Bitcoin, it tends to increase in price due to supply shock. If PEPE follows the same pattern, demand could increase as investors speculate on a potential price increase.

Pepe (PEPE) price chart. Source:Brave New Coin

Analysts have differing views on the potential impact of this halving. Some believe it could push PEPE back toward previous highs, while others caution that market conditions and investor sentiment will ultimately determine the outcome. With the coin currently hovering near crucial support levels, the halving could serve as a catalyst for renewed interest.

Market Outlook and Investor Considerations

PEPE’s future remains uncertain and highly dependent on broader market trends. If the overall cryptocurrency sector stabilizes and meme coin hype returns, PEPE could regain its momentum. However, competition from emerging meme coins, such as Yeti Ouro, and regulatory uncertainties in the U.S. could impact its trajectory.

Pepe was rejected at $0.00001450 (Fib level 0.5) and is now moving toward a retest of $0.00001130–$0.00001120. Source: Wizzardo on TradingView

Meme coins are inherently volatile, and while PEPE has demonstrated strong community support, it remains a high-risk asset. Investors should closely monitor whale activity, exchange reserves, and key support levels before making trading decisions. For those willing to take the risk, the potential rewards could be substantial—but so could the losses.

As the market braces for PEPE’s halving event, traders are watching closely to see if the meme coin can defy expectations and stage a comeback. Whether PEPE rebounds or continues its downward slide will depend on investor confidence, broader crypto trends, and its ability to hold critical price levels in the days ahead.